Metrocity Bankshares Q3 net income, EPS rise on tax benefit

Overview

• Georgia bank holding company reported Q3 net income and EPS up both yr/yr and sequentially

• Q3 net income growth driven by lower tax expense, despite declines in noninterest and net interest income

• Year-over-year results boosted by First IC acquisition in late 2025

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• TAX CREDIT BENEFIT - Q3 net income was mainly boosted by a $4.0 mln tax credit benefit, lowering tax expense

• LOAN BALANCE DECLINE - Lower average gross loan balances reduced interest income sequentially

• SBA LOAN SALES AND MARKET RATES - Lower gain on sale of SBA loans and decline in fair value of equity securities, reflecting changes in market interest rates, weighed on noninterest income

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Metrocity Bankshares Inc is $38.00, about 7.3% above its October 22 closing price of $35.43

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)